Palm opens lower on weaker rival oils, crude oil prices
KUALA LUMPUR: Malaysian palm oil futures fell for a third straight session on Wednesday, pressured by weaker rival edible oils and crude oil prices.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange slid RM54, or 1.37 per cent, to RM3,889 (US$900.23) a metric ton in early trade.
FUNDAMENTALS
Dalian's most-active soyoil contract fell 0.36 per cent, while its palm oil contract shed 0.81 per cent. Soyoil prices on the Chicago Board of Trade were down 0.49 per cent.
Palm oil tracks price movements of rival edible oils, as it competes for a share of the global vegetable oils market.
Oil prices edged lower as US President Donald Trump's erratic tariff policies raised concerns about weakening global economic growth and fuel demand.
Weaker crude oil futures make palm a less attractive option for biodiesel feedstock.
The ringgit, palm's currency of trade, strengthened 0.18 per cent against the US dollar, making the commodity more expensive for buyers holding foreign currencies.
Indonesia lowered its crude palm oil reference price to US$924.46 per ton for May, a trade regulation showed.
European Union soybean imports in the 2024/25 season that started in July had reached 11.46 million tons by April 27, up 8 per cent from a year earlier, while palm oil imports were at 2.37 million tons, down 19 per cent, data by the European Commission showed.
Palm oil may revisit its April 21 low of RM3,863 per metric ton, as it has overcome the last barrier at RM3,931, Reuters technical analyst Wang Tao said.
Shares struggled for direction and oil prices slid as relief over a potential easing of global trade tensions was offset by a worsening economic outlook and dour signals from corporates swept up by Trump's tariffs.
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